Greece said that it hoped to conclude bailout talks this week as bank shares nosedived for the second successive day and dragged down other European markets.

Piraeus Bank, the largest single faller, again hit the maximum permissible 30 per cent daily loss, while the three other main banks recorded drops of more than 20 per cent.

However, non-financial sectors recovered from the largest slump in the Athens stock market’s history on Monday, which came as markets reopened after a five-week shutdown,

Confidence rose amid an upbeat assessment of the government’s talks with creditors. “Everything will be concluded this week,” Euclid Tsakalotos, the Greek finance minister, said after meeting representatives of the International Monetary Fund, the European Commission, the European Central Bank and the European Stability